Magazine

With the start of October we are forced to face the start of the low season, when, unfortunately, we are going to be more exposed to the impact of COVID on tourism and on short-term rentals.

From now on, we are going to have fewer bookings and, therefore, we must start thinking about new strategies to adapt the operation of our properties.

That is why we have decided to begin marketing our apartments as mid-term rentals over the coming months. (Mid-term rentals are aimed at guests who want to book stays of 30 days or more, but always less than 1 year).

Guests who book mid-term are usually not travelers, so we must adapt all of our strategies in order to offer them the property they need.
Over these last months we have been adapting the apartments to this new strategy, and we are now very happy to announce that (starting in October) we have begun renting our properties in Sevilla following this strategy of month-by-month rentals.

This new strategy means that we will have less income, but also lower costs, so we hope to improve the result, without any guarantee.

With this new model we expect less income but also lower expenses, since running a vacation rental property is expensive: household utilities, cleaning costs and management fees tend to be quite high, and they are always at the owner's expense.

With mid-term rentals, owners do not have to pay all of these expenses, so in a COVID scenario with fewer bookings, it can be more profitable than short-term bookings.

The plan is to rent them again as vacation rental properties when short-term rentals become more profitable again than mid-term rentals, without any guarantee.

Impact on overall performance.

For the time being, we want to market our properties as mid-term rentals only during the low season, and we will list them again as vacation rental properties in the next high season (June-September). 

Therefore, we estimate that the final impact on the overall performance of our properties would be low, around 1% to 1.5%, without any guarantee.

As we can see in the chart below, taking Carmen Coronada's 2019 data as a reference, the estimated difference in profits between short-term and mid-term rentals would be €850 per year for that property, assuming that we rent the properties as vacation rentals during June, July, August and September, and as mid-term rentals during the rest of the year (from October to May). 

Past or estimated returns do not guarantee future returns. Investing involves a risk of total or partial loss of the invested capital.